Sunday, February 25, 2018

Russian meddling is only one challenge facing the social-media giant - Facebook unfriended (The Economist)

Few friends in journalism for Facebook these days
"In America, Facebook is steadily losing users under the age of 25 (see chart). Youngsters are spending more time on other apps such as Snapchat, and Facebook-owned photo-sharing app Instagram, where their parents and grandparents are less likely to lurk. While Instagram and the two messaging apps that Facebook owns, Messenger and WhatsApp, help insulate the firm, “core” Facebook still accounts for at least 85% of the firm’s revenue. Americans and Canadians are by far its most valuable audience, with an average revenue per user of $86, four times more than the global average. If users continue to engage less with Facebook’s core network, it could cause advertisers to leave over time.

Yet most analysts and investors are still exuberant about future prospects for Facebook, which with a market value of $521bn is the world’s sixth biggest publicly traded firm. They may be underestimating some of the risks the firm faces. One challenge, which has been highlighted by the Russia controversy, is its sloppiness. For a company whose sales pitch to advertisers is that it offers precision, targeting and transparency superior to traditional media, including television, it is remarkable that it has struggled to track the movement of ad dollars and content on its properties."
Russian meddling is only one challenge facing the social-media giant - Facebook unfriended

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